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Local attorney faces charge of embezzlement

Published: Thursday, May 23, 2013 at 5:43 p.m.

Last Modified: Thursday, May 23, 2013 at 5:43 p.m.

Hendersonville attorney Alexander Veazey III appeared in Henderson County District Court Thursday afternoon under fire after investigators say he embezzled more than $100,000 from a trust in his care.

Veazey, 60, waived his right to appointed counsel and hired attorney Chris Stepp to represent his defense. District Judge Athena Brooks set Veazey's next court date for June 14.

A preliminary investigation by the State Bar found that Veazey mishandled client funds that were deposited into his trust account, according to a consent order of preliminary injunction filed in Wake County on Jan. 31.

The investigation led to a warrant being issued for his arrest Wednesday. The warrant says Veazey embezzled, misapplied and converted to his own use “over $100,000” belonging to the trust account of "Lex H. Veazey" Attorney at Law between Jan. 1, 2011 and Jan. 31, 2013.

Another warrant issued Wednesday charges Veazey with writing a simple worthless check in the amount of $159.80 on Jan. 10 on an account with insufficient funds. His access to his account was frozen in the January consent order.

On Jan. 18, the State Bar placed Veazey on disability inactive status for an indefinite period after a Henderson County judge found him to be “mentally ill and a danger to himself and others.”

According to an order for his transfer to inactive status, Veazey was involuntarily committed to the psychiatric unit of Pardee Memorial Hospital.

The State Bar examined his trust and operating accounts, and Veazey was ordered to submit his financial records as well as documents such as client files, billing statements, memoranda and receipts.

According to the consent order, Veazey is not allowed to accept funds from clients or third parties, or withdraw funds or write any checks against any account in which client or fiduciary funds have been deposited.

Veazey is also not allowed to serve as an attorney-in-fact, trustee, escrow agent, executor or personal representative.

The State Bar had not filed a complaint seeking professional disciplinary action, and the grievance committee had not filed any complaints as of the Bar's most recent actions.

Veazey was licensed to practice law in North Carolina on Aug. 19, 1978.

He was being held at the Henderson County Detention Center in lieu of $10,100 bond.

<p>Hendersonville attorney Alexander Veazey III appeared in Henderson County District Court Thursday afternoon under fire after investigators say he embezzled more than $100,000 from a trust in his care.</p><p>Veazey, 60, waived his right to appointed counsel and hired attorney Chris Stepp to represent his defense. District Judge Athena Brooks set Veazey's next court date for June 14.</p><p>A preliminary investigation by the State Bar found that Veazey mishandled client funds that were deposited into his trust account, according to a consent order of preliminary injunction filed in Wake County on Jan. 31. </p><p>The investigation led to a warrant being issued for his arrest Wednesday. The warrant says Veazey embezzled, misapplied and converted to his own use “over $100,000” belonging to the trust account of "Lex H. Veazey" Attorney at Law between Jan. 1, 2011 and Jan. 31, 2013.</p><p>Another warrant issued Wednesday charges Veazey with writing a simple worthless check in the amount of $159.80 on Jan. 10 on an account with insufficient funds. His access to his account was frozen in the January consent order.</p><p>On Jan. 18, the State Bar placed Veazey on disability inactive status for an indefinite period after a Henderson County judge found him to be “mentally ill and a danger to himself and others.” </p><p>According to an order for his transfer to inactive status, Veazey was involuntarily committed to the psychiatric unit of Pardee Memorial Hospital.</p><p>The State Bar examined his trust and operating accounts, and Veazey was ordered to submit his financial records as well as documents such as client files, billing statements, memoranda and receipts.</p><p>According to the consent order, Veazey is not allowed to accept funds from clients or third parties, or withdraw funds or write any checks against any account in which client or fiduciary funds have been deposited.</p><p>Veazey is also not allowed to serve as an attorney-in-fact, trustee, escrow agent, executor or personal representative. </p><p>The State Bar had not filed a complaint seeking professional disciplinary action, and the grievance committee had not filed any complaints as of the Bar's most recent actions.</p><p>Veazey was licensed to practice law in North Carolina on Aug. 19, 1978.</p><p>He was being held at the Henderson County Detention Center in lieu of $10,100 bond.</p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p>